SF4593 (Legislative Session 94 (2025-2026))
Increase property tax refunds and renters credits by reducing co-pay percentages
Related bill: HF4119
AI Generated Summary
Purpose
- This bill aims to increase property tax refunds and renters credits by changing how the rent attributable to property taxes is calculated and by expanding the credit structure and maximum refunds. It updates the rules for calculating the Renters credit and requires ongoing adjustments to keep the program in line with inflation and changing property taxes.
Main Provisions
- Rewrites Minnesota Statutes 2024 section 290.0693, subdivision 3, to define a new Renters credit framework.
- For a taxpayer whose rent that counts as property taxes exceeds a specified share of household income, the taxpayer must pay a portion of the rent equal to a stated percent of income. The renter’s share is combined with the claimant’s share of the remaining rent-to-property-taxes amount.
- The credit under subdivision 2 equals the portion of rent that remains after the above payments, up to a maximum credit amount for the taxpayer’s income level (a tiered schedule is provided).
- The bill includes a detailed table listing income ranges and two percentages for each range:
- A percent of income to be paid.
- A percent of the remaining rent-to-property-taxes amount to be paid by the claimant.
- A separate “Maximum Credit” schedule is provided, tying the credit amount to income level.
- It establishes that no credit is allowed for households with income above a specified upper threshold.
- The commissioner must annually adjust:
- The dollar amounts of the income thresholds and the maximum refunds, guided by a referenced statute (270C.22), with the statutory year set for 2024 through 2026.
- A comprehensive table showing how much rent constitutes property taxes to be paid and the refund allowed at various income and assessment levels.
- The commissioner may adjust transitions between income brackets to smoother the changeover between levels.
- All refunds must be computed using the tables issued by the commissioner.
Significant Changes to Existing Law
- Moves to a more granular, income-based tiered system for the Renters credit, expanding the amount and structure of refunds available to renters.
- Introduces explicit, recurring annual adjustments to thresholds and refund amounts rather than leaving them static.
- Requires the creation and public posting of a comprehensive table outlining how rent translates to property taxes owed and the corresponding refund across income and assessment levels.
- Establishes a high-income cutoff beyond which no renter credit is provided.
Implementation Notes
- The changes are tied to Minnesota Statutes and rely on annual updates to thresholds and refunds.
- The new framework depends on transparently published tables for taxpayers to determine their credit.
Relevant Terms - Renters credit - Renters credit calculation - Renters credit table - Renters credit maximum - Rent constitutes property taxes - Property taxes - Income thresholds - Percent of income - Percent paid by claimant - Maximum credit - Commissioner - Annual adjustment - Table of refunds - 270C.22 - Statutory year 2024-2026 - No credit at high income - Income brackets - Refund amount
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 18, 2026 | Senate | Action | Introduction and first reading | ||
| March 18, 2026 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"A revised Subdivision 3 for Renters that creates a detailed income-based table showing percent of income and percent paid by the claimant to determine the rent‑related credit.",
"Provisions requiring annual adjustments to income thresholds and maximum refunds under section 270C.22.",
"A requirement for the commissioner to construct and publish a comprehensive table showing rent constituting property taxes and refunds at various income levels, with a mechanism to transition between income brackets."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024, section 290.0693, subdivision 3 (Renters credit), by establishing a detailed income‑based credit schedule and linking the credit to a broader framework for refunds and copays that increases property tax refunds and renters credits.",
"modified": [
"Modification of the Renters credit calculation in Subdivision 3, including a new structure for determining eligibility and credit amount."
]
},
"citation": "290.0693",
"subdivision": "subd.3"
},
{
"analysis": {
"added": [
"Reference to alignment with the new Renters credit provisions in 290.0693, including how 290A.04 interacts with the broader refund/credit framework."
],
"removed": [],
"summary": "The bill also amends Minnesota Statutes 2024 section 290A.04, subdivisions 2 and 4, in connection with the changes to the Renters credit and related refundable amounts described for 290.0693.",
"modified": [
"Subdivisions 2 and 4 of 290A.04 are amended to support the implementation of the revised Renters credit structure."
]
},
"citation": "290A.04",
"subdivision": "subd.2; subd.4"
},
{
"analysis": {
"added": [
"An annual adjustment requirement for income thresholds and maximum refunds under paragraph a, to be governed by section 270C.22."
],
"removed": [],
"summary": "The bill directs that the commissioner annually adjust the dollar amounts of the income thresholds and the maximum refunds as provided in section 270C.22, tying the Renters credit changes to the statutory adjustment mechanism.",
"modified": [
"Establishes linkage between the Renters credit provisions and the Section 270C.22 adjustment process."
]
},
"citation": "270C.22",
"subdivision": ""
}
]Progress through the legislative process
In Committee